KEY STIMULUS OPPORTUNITIES: An Overview for CALSTART Members

KEY STIMULUS OPPORTUNITIES: An Overview for CALSTART Members The federal stimulus bill provides significant funding opportunities for CALSTART members. With the inclusion of $16 billion in funding for transit and high speed rail, the opportunities outlined here total approximately $35 billion. Approximately $12 billion of this is in the form of grants for clean energy and energy efficiency including, among other things, transportation. The remainder of the funding outlined here is in loan guarantees and funding for transit agencies and high speed rail. Clean Transportation Technologies and Solutions www.calstart.org Board of Directors Dr. Lon E. Bell BSST, Inc Mr. John Boesel CALSTART Mr. John Formisano FedEx Express Dr. Michael Gallagher Westport Innovations Mr. Fred Hansen TriMet Mr. Dan LeFevers Gas Technology Institute Dr. Chung Liu South Coast Air Quality Management District Mr. John Marinucci New Flyer Industries Limited Mr. Alan Niedzwiecki QUANTUM Technologies World Wide Inc. Mr. Ehtisham Siddiqui BAE Systems Mr. George Survant Florida Power and Light Mr. William Zobel SEMPRA / SoCal Gas The information below should help provide an overview of the available funding opportunities. In many cases, the official solicitations with criteria, requirements, and deadlines have not yet been released. We have therefore provided the most up-to-date information available, based on language in the stimulus bill and the original funding authorizations, as well as conversations with our contacts in various government agencies. However, this information is subject to change, and we urge you to stay tuned for solicitation details. Information that has changed since the initial document is in italics. Note for first time grant applicants: prospective applicants must complete several one-time registrations in order to submit an application through Grants.gov. These requirements can take up to 21 days, and we recommend that you start this process. More information is available at http://www.grants.gov/getstarted and http://www.grants.gov/assets/organizationregcheck.pdf Finally, www.recovery.gov should be a good resource for stimulus-related information. ALTERNATIVE FUELED VEHICLES PILOT PROGRAM (through Clean Cities) Funding: $300,000,000 in competitive grants through the Department of Energy s Clean Cities (less than the original House and Senate proposals) Overview: This pilot program is a subset of the larger Clean Cities program. Grants under this program should be used to acquire alternative fueled vehicles, fuel cell vehicles, and hybrid vehicles; and to acquire, develop and install infrastructure necessary to fuel and support the vehicles acquired through the program. The grants will be for $5-15 million dollars and will require a 50% cost share. Eligibility: the eligibility requirements for this pilot program are more restrictive than those for Clean Cities generally: As required by section 721 of the Energy Policy Act of 2005, prospective applicants shall be limited to heads of State or local governments or a metropolitan transportation authority, or combinations of these, and a designated Clean Cities Coalition Project types: this program is for cost-shared projects that expand the use of advanced and alternative fueled vehicles. Vehicle and infrastructure deployment should be completed within two years, while data collection can continue for two additional years (meaning that the total period of performance is four years). Eligible technologies and project types are below Light, Medium, and Heavy Duty Vehicles: o Vehicles using alternative fuels recognized by Energy Policy Act (for a listing of authorized alternative fuels please see http://www1.eere.energy.gov/vehiclesandfuels/epact/about/epact_fuels.ht ml) o Fuel Cell Electric Vehicles O F F I C E S I N : 48 S. Chester Ave, PASADENA, CA 91106 626.744.5600 FAX: 626.744.5610 1536 Wynkoop, Suite 600, DENVER, CO 80202 303.825.7550 FAX: 303.825.7551 1160 Brickyard Cove, Suite 101, RICHMOND, CA 94801 510.307.8772 FAX: 510.307.8706

o Hybrid Electric Vehicles o Plug-in Hybrid Electric Vehicles o Neighborhood Electric Vehicles (for light duty, only if replacing full size on-road vehicles) o Diesel Vehicles with 2009 MY or later compliant emissions (only if replacing gasoline powered vehicles and in conjunction with biodiesel fuel use) o Hydraulic Hybrid Vehicles (medium and heavy duty only) Other Off-Road/Non-Road Commercial Work Alternative Fuel or Advanced Technology Vehicles o Ground Support Vehicles at Public Airports that follow the guidelines above for Light, Medium and Heavy-Duty vehicles. o Medium and Heavy duty freight loading and handling high fuel use vehicles at ports or intermodal freight operations that follow the guidelines above for Light, Medium and Heavy-Duty vehicles. o For other off-road projects not identified above, off-road vehicles are only eligible for funding that are included in a project that primarily (i.e. greater than 75%) funds on-road vehicles/infrastructure (i.e. the off-road vehicles component complements the on-road vehicle portion of the project) and that follow the guidelines above for Light, Medium and Heavy-Duty vehicles. NOT Eligible Marine applications and locomotives are not eligible under this solicitation. Prototype or novelty vehicles, golf carts, snowmobiles, and other off road recreational or sport vehicles are not eligible. Timeline: The Alt Fueled Vehicles Pilot Program solicitation was posted 2/23/09. DOE anticipates two rounds for the pilot program: Round 1 has a deadline of May 29, 2009. Round 2 has a deadline of September 30, 2009. NOTE: DOE expects to have enough funding for Round 2, but funding for Round 2 is not guaranteed. Apply for Round 1 if possible. Also note that the deadline for the other Areas of Interest under Clean Cities (separate from the $300 million in stimulus funding) is still March 31, 2009. Project Selection Criteria: the solicitation gives details on selection criteria. The basics are below. Please see the full solicitation for additional details. Probability of project success based on technical approach and work plan (30%) Probability of project success based on team expertise, prior experience (20%) Ability to preserve or create jobs through rapid project implementation (20%) Energy security and environmental benefits from petroleum displacement and emissions reduction (20%) Project cost and cost share (10%) For additional information: Details on the program are included in the solicitation released February 23, 2009 (see below). We expect proposals that are ready for immediate initiation to receive higher priority in the evaluation process. These proposals would provide evidence of mature design, site agreements, site licensing and permitting, partner commitments, and equipment availability. Previous experience with similar projects will also be a factor. Additional information is available below: Revised Funding Opportunity Announcement with details: http://ecenter.doe.gov/iips/faopor.nsf/unid/f1befa84084808598625756800695728/$fil e/clean_cities_fy09_foa_modification_003..pdf DOE Clean Cities Website: http://www1.eere.energy.gov/cleancities/ - 2 -

TRANSPORTATION ELECTRIFICATION Funding: $400,000,000 in grants with cost-sharing required (through DOE) Overview: This program provides funding for transportation electrification projects through three different focus areas: (1) electric drive vehicle demonstration and evaluation, which has a fairly wide focus that looks like it would include hybrids and electric rail; (2) near-term transportation sector electrification, which appears to be focused on deployment of electric transportation technologies and infrastructure, particularly in goods movement; and (3) an education program focused on secondary and higher education. Note that the details of the focus areas are not yet out this information is based on the original authorization, and is subject to change. Also, we expect to see larger projects funded so as to reduce administrative costs and delays. Eligibility: All types of entities are eligible to apply. (Including, but not limited to state government agencies, local government agencies, institution of higher education, other non-profit organizations, and for profit organizations), except other Federal agencies, Federally Funded Research and Development Center (FFRDC) Contractors, and nonprofit organizations described in section 501(c)(4) of the Internal Revenue Code of 1986 that engaged in lobbying activities after December 31, 1995. There are additional requirements, however, that complicate the application process: 50% cost share is required for Areas of Interest 1, 2, and 3, and 20% for Area of Interest 4 Minimum award sizes are fairly high: o $20 million for AOI 1 o $10 million for AOI 2 o $30 million for AOI 3 o $500,000 for AOI 4 Additional requirements apply to vehicle range and number of vehicles. Please see the solicitation for details Project types: This program has four Areas of Interest: Area of Interest 1: Electric Drive Vehicle Demonstration and Evaluation: projects to establish widespread demonstration and evaluation of projects to accelerate the market introduction and penetration of advanced electric drive vehicles (AEDV). Grants will be made to conduct development, demonstration and data collection projects on a wide range of electric drive transportation technologies. Projects in this Area of Interest will develop and test AEDVs to enable a fast ramp-up to production and achieve significant market penetration. Recipients are expected to develop and optimize an AEDV that can 1) achieve commercialization within five (5) years of project initiation or 2) reach volume production within one year of the project conclusion, whichever occurs first. Area of Interest 2: Transportation Sector Electrification: to develop and demonstrate transportation sector electrification, which may include truck stop electrification, electric idle reduction technologies, electric truck refrigeration units, shoreside electrification, non-road vehicle electrification, and the recharging and electrical support infrastructure required for each technology, with the goal of maximizing petroleum reduction and reducing greenhouse gas emissions from the vehicle. The electrification projects must include vehicles to demonstrate the proposed technology as part of the project. The classes of demonstration vehicles that are covered range from electric-drive material and cargo handling equipment, electric airport ground support equipment, light duty passenger vehicles, medium or heavy duty vehicles, commercial rail, and marine vessels. Area of Interest 3: Combined Proposals for Areas 1 and 2 Area of Interest 4: Advanced Electric Drive Vehicle Education Program: projects to establish education projects that accelerate the mass market introduction and - 3 -

penetration of advanced electric drive vehicles, which includes light, medium, and heavy duty advanced electric vehicles (EV), plug-in hybrid electric vehicles (PHEV), and fuel cell electric vehicles (FCV). Timeline: Application deadline is May 13, 2009. For additional information: Additional information is available in the full solicitation, which has been posted but is not especially easy to get. Go to https://www.fedconnect.net/fedconnect/publicpages/publicsearch/public_opportunities. aspx and search by reference number for solicitation DE-FOA-0000028. Click on the link that comes up and then, under Documentation on the right side of the page, click on body. DIESEL EMISSION REDUCTION ACT GRANTS Funding: $300,000,000 in grants (through EPA, most money funneled through regional EPA offices) Overview: The Diesel Emissions Reduction Act focus on deployment of retrofits, cleaner/more efficient vehicles and engines, idling reduction and fuel switching (biodiesel), as well as emerging technologies. DERA grants from this solicitation will focus on promoting economic recovery, preserving and/or creating jobs, and reducing diesel emissions. 70% of the funding will go to the National Clean Diesel Program, while 30% will go to the State Clean Diesel Grant Program. Additionally, DERA provides funding to be administered by the states through the State Clean Diesel Grant Program Eligibility: eligible entities are limited to U.S. regional, State, local, tribal, or port agencies or nonprofits related to transportation or air quality. Manufacturers must partner with eligible entities to receive these funds. Under the National Clean Diesel program, at least 50% of the funds will go toward public fleets (including private fleets contracted or used for public purposes, such as school buses or refuse haulers) Project Types: DERA funding will have four separate components National Clean Diesel Funding Assistance Program: regional grant competitions for clean diesel technology deployment ($156 million): covers from 25% to 100% of costs for projects that significantly reduce diesel emissions by: o deploying EPA or CARB verified retrofit technologies and/or o replacing and repowering with EPA-certified configurations and/or o reducing idling with EPA-approved technologies o cleaner fuels (vs conventional diesel) SmartWay Clean Diesel Finance ($30 million): for grants that establish innovative financing programs for eligible vehicle or equipment owners Clean Diesel Emerging Technologies ($20 million): funding for projects that will use technologies not yet verified, but on EPA s emerging technologies list: http://epa.gov/cleandiesel/prgemerglist.htm. Manufacturers with other emerging technologies would have to get their technologies on the list prior to the application closing date. See http://www.epa.gov/otaq/diesel/prgemerg.htm for more details. State clean diesel program ($88 million): flexible source of funding for states to develop and implement grant and low-cost revolving loan programs as appropriate to meet State needs and goals relating to the reduction of diesel emissions States must establish new grants with this funding. Project Selection Criteria: Funding under the Recovery Act has slightly different priorities: A principal goal and priority of the assistance under this opportunity is to - 4 -

promote job creation and/or preservation and economic recovery. Applicants must demonstrate in their application how the proposed project will: Preserve and/or create jobs and promote economic recovery; Maximize job creation and economic benefit; Assist those most impacted by the current economic conditions; Provide investments needed to increase economic efficiency by spurring technological advances in science and health; Invest in transportation, environmental protection and other activities that will provide long-term economic benefits; Be commenced as quickly as possible consistent with prudent management. Track, measure, and report on the recipient s progress towards achieving the Recovery Act priorities. In addition to the Recovery Act priorities described above, a principal objective of the assistance under the national program is to achieve significant reductions in diesel emissions in terms of tons of pollution produced and reductions in diesel emissions exposure, particularly from vehicles, engines and equipment operating in areas designated by the Administrator as poor air quality areas. Under EPAct 2005, priority for funding under this RFA will go to projects that accomplish the following: Maximize public health benefits; Are the most cost-effective; Are in areas with high population density, that are poor air quality areas (including nonattainment1 or maintenance of national ambient air quality standards for a criteria pollutant; Federal Class I areas2; or areas with toxic air pollutant concerns); Are in areas that receive a disproportionate quantity of air pollution from diesel fleets, including truck stops, ports, rail yards, terminals, and distribution centers or that use a community-based multi-stakeholder collaborative process to reduce toxic emissions; Include a certified engine configuration or verified technology that has a long expected useful life; Maximize the useful life of any certified engine configuration or verified technology used or funded by the eligible entity; Conserve diesel fuel; and Utilize ultra low sulfur diesel fuel (15 parts per million of sulfur content) ahead of EPA s mandate (for non-road projects). Each individual region has additional guidelines, outlined in the Request for Applications (see below for link) Timeline: The closing date for the national program is Tuesday, April 28, 2009. For more information: The Request for Applications (RFA) for the national program is now available at: http://www.epa.gov/otaq/eparecovery/documents/recovery-act-nationalclean-diesel-rfa.pdf The RFA contains detailed links and information on eligible technologies, funding priorities, and criteria. General information on the DERA programs is available at: http://www.epa.gov/otaq/diesel/grantfund.htm - 5 -

GRANTS FOR ADVANCED BATTERY AND COMPONENT MANUFACTURING Funding: $2,000,000,000 in grants, with cost-share requirements (through DOE) Overview: This is a broad new program designed to encourage battery and electric drive component manufacturing in the United States. This is a very good opportunity for companies looking to construct or expand manufacturing facilities in the U.S. Eligibility: Applies only to manufacturers of batteries and components produced in the U.S. Each individual Area of Interest has a number of additional restrictions and requirements. Generally speaking, proposals are required to be of a certain minimum size in terms of number of batteries produced. Additionally, applicants are required to have purchase and supply commitments. Project Types: This program contains seven Areas of Interest:: Area of Interest 1: Cell and Battery Manufacturing Facilities: projects to build, or increase production capacity, and validate production capability of advanced automotive battery manufacturing plants located in the U.S Area of Interest 2: Advanced Battery Supplier Manufacturing Facilities: projects to build, or increase production capacity, and validate production capability of battery materials (anode and cathode active materials) and component (e.g., separator, packaging material, and electrolyte) and processing equipment manufacturing plants located in the U.S. Area of Interest 3: Combined Applications for Areas of Interest 1 and 2 Area of Interest 4: Advanced Lithium ion Battery Recycling Facilities: projects to build, or increase production capacity, and validate capability of the recycling or refurbishment plants located in the U.S. for Li ion batteries. Area of Interest 5: Electric Drive Component Manufacturing Facilities: projects to build, or increase production capacity, and validate production capability of advanced automotive electric drive component manufacturing plants located in the U.S. Area of Interest 6: Electric Drive Subcomponent Manufacturing Facilities: projects to build, or increase production capacity, and validate production capability of electric drive subcomponent supplier manufacturing plants located in the U.S. to supply advanced automotive electric drive component manufacturers. Specific components that will be supported are power semiconductors including packaging, DC bus capacitors, motor magnets, and related equipment. Area of Interest 7: Combined Applications for Areas of Interest 5 and 6 NOTE: While not mandatory, teaming among materials/component manufacturers with Battery Original Equipment Manufacturers (OEMs) is encouraged. Also, while not mandatory, teaming among applicants in areas of interest 5 and 6 is encouraged. It is strongly encouraged that teams include component material or subcomponent suppliers and at least one EDV component or system OEM. It is also encouraged that teams include one or more potential customers/end users of the components to be produced (i.e., automotive OEMs, makers of consumer products, devices supporting defense applications, etc). Applications in Areas of Interest 1 through 3 that include basic research on batteries or battery materials shall be deemed nonresponsive and will not be considered for comprehensive review. Qualification work on battery packs and cells (under Area of Interest 1) and materials screening and validation testing (under Area of Interest 2) however is permitted on a limited basis. Applications in Areas of Interest 5, 6, and 7 that include basic research on inverters, converters, motors or subcomponents for EDV drivetrains shall be deemed nonresponsive and will not be considered for comprehensive review. Qualification work on EDV - 6 -

components or systems (under Area of Interest 5) and materials or subcomponent screening and validation testing (under Area of Interest 6) however is permitted on a limited basis. Timeline: Applications due May 19, 2009. For additional information: We expect proposals that are ready for immediate initiation to receive higher priority in the evaluation process. These proposals, according to DOE, would provide evidence of mature design, site agreements, site licensing and permitting, partner commitments, and equipment availability. Additional information is available in the full solicitation, which has been posted but is not especially easy to get. Go to https://www.fedconnect.net/fedconnect/publicpages/publicsearch/public_opportunities. aspx and search by reference number for solicitation DE-FOA-0000026. Click on the link that comes up and then, under Documentation on the right side of the page, click on body. ENERGY EFFICIENCY BLOCK GRANTS Funding: $3,200,000,000 in block grants (through DOE) Overview: These block grants are very flexible and can be given to state governments, local governments, and Indian tribes to implement strategies that (1) reduce fossil fuel emissions, (2) reduce total energy use, and (3) improve energy efficiency in transportation and other sectors. 68% of the funds go to local government, 28% to state government, 2% to Indian tribes, and 2% in competitive grants to consortia of local governments or Indian tribes. With the exception of the 2% that is awarded competitively, the allocations will be based on a formula that takes into account population and other criteria. The eligible entities will then have considerable flexibility in sub-allocating the funds. Eligibility: $2,800,000,000 will be distributed by formula to state (28%) and local (68%) governments and Indian tribes (2%). The remaining $400,000,000 will be distributed to units of local government (including Indian tribes) that are not otherwise eligible (due to size, population, etc) and to consortia of these entities. The eligible entities will then determine how to sub-allocate within their area, and requirements and focus will most likely differ by jurisdiction. Project Types: this is a flexible program that leaves the real decisions up to the state, local, and Indian governments receiving the funds for sub-allocation. That said, the eligible entities have to provide an overall strategy for energy efficiency and conservation, including the proposed use of the funds, and the secretary has to approve these strategies. The original authorization gives some guidance on the use of funds. Sections relevant to transportation are below. Note the catch-all at the end: Development and implementation of an energy efficiency and conservation strategy Retaining technical consultant services to assist in the development of such a strategy, including: o formulation of energy efficiency, energy conservation, and energy usage goals; o identification of strategies to achieve those goals through efforts to increase energy efficiency and reduce energy consumption & encouraging behavioral changes o o development of methods to measure progress in achieving the goals; development and publication of annual reports to the population served by the eligible entity describing both - 7 -

the strategies and goals; and the progress made in achieving the strategies and goals during the preceding calendar year; and o other services to assist in the implementation of the strategy; Development and implementation of programs to conserve transportation energy, including: o workplace measures: use of flex time; satellite work centers; o development and promotion of zoning guidelines or requirements that promote energy efficient development; o development of infrastructure (bike lanes and pedestrian walkways, etc) o o synchronization of traffic signals; and other measures that increase energy efficiency and decrease energy consumption; The purchase and implementation of technologies to reduce, capture, and, to the maximum extent practicable, use methane and other greenhouse gases generated by landfills or similar sources; Any other appropriate activity, as determined by the Secretary, in consultation with the Administrator of the Environmental Protection Agency; the Secretary of Transportation; and the Secretary of Housing and Urban Development. Timeline: grants released very quickly to state, local, and tribal agencies. The original authorization then provides these entities with 120 days (states) to 1 year (local governments and Indian tribes) to come up with an energy efficiency and conservation strategy, including intended use of grant funding. For additional information: plans and specifics will vary by region. DOE websites may have more info: Energy Efficiency and Renewable Energy: http://www.eere.energy.gov/ DOE Recovery Act website: www.energy.gov/recovery Futher DOE guidance regarding the use of these funds is expected soon STATE ENERGY PROGRAM Funding: $3,100,000,000 in grants (through DOE) Overview: provides grants to states to carry out their own renewable energy and energy efficiency programs. DOE funding goes to state energy offices, and programs are run by the state offices. State offices have until May 12 to develop and submit plans. DOE recently provided guidance to state agencies with regard to the use of these funds: http://www.energy.ca.gov/recovery/documents/sep_recovery_act_guidance_de-foa- 00000521.pdf Eligibility: funding goes to state energy offices, who then run their own programs and may sub-allocate funds as part of that process. Project Types: projects are determined by state energy offices, but the program has general guidelines Increase the energy efficiency of the U.S. economy. Reduce energy costs. Improve the reliability of electricity, fuel, and energy services delivery. Develop alternative and renewable energy resources. Promote economic growth with improved environmental quality. Reduce our reliance on imported oil. - 8 -

Examples of relevant projects (from California s 2006 SEP funding) include analysis of barriers to improved fuel economy and non-petroleum transportation projects, energy efficient school bus demonstrations, and incentive funding for alternative fuel and energy efficient vehicles for private and public fleets. Other categories have included: Alternative Fuels, Clean Cities, Hydrogen, Telecommuting, Transportation Alternatives, Trucks and Heavy Vehicles Timeline: not specified For more information: DOE guidance regarding the use of SEP stimulus funds is available here: http://www.energy.ca.gov/recovery/documents/sep_recovery_act_guidance_de-foa- 00000521.pdf. EERE s State energy program website has general information on the program: http://apps1.eere.energy.gov/state_energy_program/. Individual state energy offices will have more information on state-by-state projects and details. SEP contacts in each state are available here: http://apps1.eere.energy.gov/state_energy_program/seo_contacts.cfm EERE RESEARCH, DEVELOPMENT, DEMONSTRATION, AND DEPLOYMENT Funding: $2,500,000,000 in grants (through DOE) Overview: The bill sets aside $2.5 billion for applied research, development, demonstration, and deployment activities. $800 million of this is for projects related to biomass, $400 million is for geothermal, and $50 million is for IT and communications energy efficiency and standards. We expect this funding to go out through DOE labs. We have heard that the remaining $1.25 billion may go to the labs to fund operations and may not be available for grants. Eligibility: not specified Project Types: applied research, development, demonstration, and deployment of energy efficiency and renewable energy technologies. Timeline: not specified ADVANCED RESEARCH PROJECTS AGENCY ENERGY (ARPA-E) Funding: $400,000,000 for ARPA-E (through DOE). ARPA-E will administer competitive grants, cooperative agreements, or contracts Overview: The bill sets aside $400,000,000 for ARPA-E, established as part of the America COMPETES Act in August 2007. ARPA-E is modeled after DARPA, and would focus on high-risk research and the rapid development of transformational clean energy technologies. ARPA-E does not yet have a director and the small staff that exists is in the very early stages of developing the program. Eligibility: Generally speaking, competitive grants, cooperative agreements, and contracts can be awarded to universities, private companies, research foundations, industry collaborations, and consortia (which can also include federal laboratories). Funds may be used for activities in any stage of the innovation spectrum from early-stage basic research to late-stage demonstration. A special emphasis should be placed on activities - 9 -

that serve to bridge between these stages and, ultimately, across the valley of death to commercial applications of the technologies. Project Types: funds can be used for any stage of technology innovation, from basic research to late stage demonstration. It is not yet clear where the focus of ARPA-E will be, but we are expecting it to focus on R&D and on large jumps and barriers to technology development, rather than on incremental improvements. Timeline: not specified. Program still being developed. NEAR TERM ENERGY EFFICIENCY TECH DEMONSTRATIONS / RESEARCH Funding: $300,000,000 for energy efficiency research, development, test, and evaluation (through DOD). Overview: The bill sets aside $300,000,000 for DOD energy efficiency research, development, test, and evaluation. Funds are equally divided among Army, Navy, Air Force, and Defense-wide. Funds are to be used for funding of research, development, test, and evaluation projects, including pilot projects, demonstrations, and energy efficient manufacturing enhancements. Transportation is one possible use for this funding. Eligibility: Funds are equally divided among Army, Navy, Air Force, and Defense-wide. Project Types: According to the joint explanatory statement on the stimulus bill, the funds are to be used for improvements in energy generation and efficiency, transmission, regulation, storage, and for use on military installations and within operational forces, to include research and development of energy from fuel cells, wind, solar, and other renewable energy sources to include biofuels and bioenergy. Timeline: the Secretary must provide a plan for the use of these funds within 60 days. INNOVATIVE TECHNOLOGY LOAN GUARANTEE PROGRAM Funding: $6,000,000,000 for loan guarantees through the Department of Energy. NOTE: biofuels portion is limited to $500,000,000 Overview: creates a Temporary Program for Rapid Deployment of Renewable Energy and Power Transmission Projects, consisting of loan guarantees for up to 80% of project cost. Projects must commence construction by 9/30/2011 Eligibility: for qualified projects that commence construction not later than 9/30/2011 Project Types: this temporary program funds three different types of projects, including renewable energy, electric power transmission, and biofuels, which are most relevant for transportation. The bill defines eligible biofuel projects as leading edge biofuel projects that will use technologies performing at the pilot or demonstration scale that the Secretary determines are likely to become commercial technologies and will produce transportation fuels that substantially reduce life-cycle greenhouse gas emissions compared to other transportation fuels. Note: the biofuels loan guarantee funding is limited to $500 million. Timeline: must enter into guarantee no later than 9/30/2011-10 -

ENERGY EFFICIENT MOTOR VEHICLE FLEET PROCUREMENT Funding: $300,000,000 for the General Services Administration, to remain available until 9/30/2011 Overview: the bill gives the GSA $300 million to purchase more efficient vehicles for federal fleets, with the goal of substantially increasing energy efficiency, including increasing fuel efficiency and reducing emissions. Vehicles must be replaced on at least a one to one basis, and newer vehicles must demonstrate a fuel efficiency improvement of at least 10% over the vehicles they are replacing. Eligibility: funds are for use by GSA in acquiring more efficient vehicles for federal fleets. Project Types: the bill specifies that these funds can be used for capital expenditures and necessary expenses of acquiring motor vehicles with higher fuel economy, including: Hybrid vehicles Electric vehicles Commercially-available plug-in hybrids. Language favors plug-in hybrids. Timeline: the GSA must submit a plan for expenditure of the funds to the Appropriations committee within 90 days, detailing the current federal fleet inventory and a strategy to increase energy efficiency through the replacement of vehicles using stimulus funding. The funds will be available until 9/30/2011. COMPETITIVE SURFACE TRANSPORTATION GRANTS Funding: $1,500,000,000 for grants through the Department of Transportation Overview: very flexible new program providing discretionary grants to be awarded by State and local governments or transit agencies on a competitive basis "for projects that will have a significant impact on the Nation, a metropolitan area, or a region." These will be large projects, with a minimum size of $20 million and a maximum size of $300 million. Eligibility: State and local governments and transit agencies Project Types: Projects include, but are not limited to, highway or bridge projects eligible under title 23, US Code, including interstate rehabilitation, improvements to the rural collector road system, the reconstruction of overpasses and interchanges, bridge replacements, seismic retrofit projects for bridges, and road realignments, public transportation projects eligible under chapter 53 of title 49, US Code, including investments in projects participating in the New Starts or Small Starts program that will expedite the completion of those projects and their entry into revenue service, passenger and freight rail transportation projects, and port infrastructure investments, including projects that connect ports to other modes of transportation and improve the efficiency of freight movement." Timeline: DOT should publish criteria in 90 days, applications will then be due 180 days after criteria are published, and projects should be selected within one year. - 11 -

RAIL AND TRANSIT FUNDING The stimulus bill includes funding for high speed rail and transit: $6.9 billion for the Federal Transit Administration for capital assistance grants, $100 million of which is for discretionary grants to public transit agencies for capital investments that will assist in reducing the energy consumption or greenhouse gas emissions of their public transportation systems. Priority for these grants will be given to projects based on the total energy savings that are projected to result from the investment, and projected energy savings as a percentage of the total energy usage of the public transit agency. $750 million for capital expenditures for modernizing or improving fixed guideway infrastructure. Fixed guideway means anything that uses exlusive or controlled rights-of-way or rails includes everything from HOV lanes to Bus Rapid Transit and heavy rail. This funding will be distributed by formula. $750 million for New Starts or Small Starts projects that are already in construction or nearly ready to begin construction. Again, this is for fixed guideway systems, including: rapid rail, light rail, commuter rail, automated guideway transit, people movers, and exclusive facilities for buses (such as bus rapid transit) and other high occupancy vehicles. $8 billion for high speed rail corridors. The Secretary of Transportation has flexibility to allocate these funds between the Capital Assistance to the States program and the High Speed Passenger Rail program. RELEVANT TAX PROVISIONS The stimulus bill includes a number of tax provisions designed to encourage the development and deployment of clean technologies. Some of the more relevant credits are outlined below: Advanced Energy Investment Credit: New 30% investment tax credit for creating or retooling manufacturing facilities for advanced energy property, including renewable energy, energy storage, and energy conservation. Projects must be certified by the Secretaries of Treasury and Energy through a competitive bidding process to begin within the next 6 months. Temporary Increase in Credit for Alternative Fuel Pumps: increases the alternative refueling property credit for businesses from 30% (capped at $30,000) to 50% (capped at $50,000) for 2009-2010. Hydrogen refueling pumps still have a 30% credit, but the cap is raised to $200,000. Plug-in Electric Drive Vehicle Credit: increases tax credits for the first 200,000 plug in vehicles that each manufacturer places in service. The base amount of the credit is $2500, and it increases based on battery capacity up to a limit of $7500. GVW is limited to 14,000 lbs. The bill also provides a plug-in conversion kit credit. - 12 -